DRAM Maker Qimonda Files For Insolvency

As with most every other sector, the DRAM market has been struggling of late. Interestingly enough, it's expected that a recent departure from the arena could actually ease some of the pain for everyone else involved. Germany's Qimonda, which has been labeled the planet's fifth-largest DRAM vendor, currently controls about 10 percent of the entire market. Or, at least it did before filing for insolvency just days ago.

Now, there stands a chance that the 10 percent gap will either be covered by rivals, or -- possibly more interesting -- that the hole will simply remain unfilled. In either scenario, it's extremely unlikely that the remaining vendors will be forced to lower prices even further in the name of competition, and given that the demand for these modules is scheduled to weaken further in 2009, coming up short on industry-wide shipments may not be an issue at all.

In fact, DRAMeXchange, a leading price-tracking organization for the industry, has outrightly stated that there was a "high possibility" for a 10 percent cut in the worldwide supply of DRAM chips, and that figure could rise even higher if Qimonda's competitors decide to trim back on their own.